Dubai Retail Property Sales Soar 177% in Record H1 2026
Dubai's retail real estate segment just posted one of its strongest first halves on record. Retail property sales values surged 177% year-on-year to AED 3.8 billion (roughly $1 billion) in the first half of 2026, while the number of transactions climbed 56%, according to recent market analysis.
The average retail deal size also jumped sharply, rising 77% year-on-year to AED 4.4 million — a sign that larger, higher-value retail assets are drawing strong investor appetite, not just small unit sales.
The twist: While sales are booming, new leasing activity tells the opposite story. New retail rental contracts fell 26% over the same period, even as lease renewals ticked slightly higher and average rents grew nearly 4.5% year-on-year. In other words, investors are buying aggressively, but businesses signing new leases are being far more selective about where they commit.
What's driving the sales boom: Off-plan retail properties — units purchased before completion — accounted for the bulk of the growth, more than doubling in transaction volume. That mirrors a broader pattern across Dubai's residential market this year, where off-plan buying has consistently outpaced ready-property sales.
What to watch next: With winter tourism season approaching, prime malls and well-located retail assets are expected to stay resilient, even if the broader leasing slowdown persists. The gap between strong investment demand and cautious tenant demand is the key trend to monitor through the rest of 2026.